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debt vs equity

debt

Definitions

noun

  1. an obligation to pay or do something
  2. the state of owing something (especially money)
  3. money or goods or services owed by one person to another

Examples

Hanging on paper, and yet weighed down by leavy burdens* Trade necefijury to Enable us to fuppbrt an enox - motts debt; and yet that debt, together with an excefs of paper* money, working continually towards the dcftruAion of trade. —

A donkey can avoid bad debts in a climate of strong economic growth, and negative real interest rates.

After the Asian financial crisis of 1997 and 1998, the IMF proposed an institutionalized default program, which it called the sovereign debt restructuring mechanism.

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equity

Definitions

noun

  1. the ownership interest of shareholders in a corporation
  2. the difference between the market value of a property and the claims held against it
  3. conformity with rules or standards

Examples

Book value can increase as a result of mergers, and it can go up if a company has just sold a lot of new equity.

But I do know there is a greater prospect he will seek a bit of equity in the distribution of investment and development of infrastructure than the present triumvirate.

 Thin capitalisation - offshore jurisdictions tend not to impose \ "thin capitalisation\" rules on companies (except for regulated entities such as banks and insurance companies), allowing them to be formed with a purely nominal equity investment.

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